The Franchise Model for Quality Sport.

Note: In the last six months, a chorus of voices, including athletes, directors, researchers, and doctors from both Canada and the USA, have fervently beseeched their elected officials to take meaningful action regarding accountability and oversight within the current amateur sports sector. This resounding call serves as an unequivocal signal that the status quo demands reevaluation. In acknowledgment of this pressing reality, we hereby offer alternative solutions for the sports system

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With two decades of invaluable experience in the world of franchising, we couldn't help but notice a glaring gap, an untapped opportunity in the realm of sports. Just like so many others, we've engaged in countless discussions about the challenges that plague the world of sports, chasing ?solutions that could elevate the sector.

?Through our journey we've quietly assumed the role of a pseudo-franchisor (small scale) for several sports organizations we've had the privilege of collaborating with. Through our extensive involvement, we've not only identified the hurdles but have also crafted the foundation for transformative change.

Imagine a world where sports aren't just about competition but also about creating a sustainable ecosystem that empowers administrators (volunteers and/or paid) to build capacity and community. It's a vision where the principles of franchising, honed over years of expertise, converge with the new realities of sport. The synergy between these two worlds holds the promise of revolutionizing how sports are organized, operated, and experienced.

“But Community Sport Is Not A Business!”

The notion that community sport exists outside the realm of business is a perception that merits re-evaluation. At its core, business is about the exchange of value, and when we consider the registration fees, tournament fees, ticket sales, merchandise, and even concession purchases that accompany sporting events, it becomes evident that money is undeniably exchanging hands for both products and services. This financial transaction, no matter how modest, is a fundamental characteristic of business.

It's important to recognize that the not-for-profit status that many sports organizations adopt doesn't negate their status as businesses. In fact, the not-for-profit structure is itself a distinct type of business entity, one that should be focused on achieving a mission or serving a community rather than maximizing profits. It operates with fiscal responsibility, budgets, revenue streams, and expenses - all quintessential components of any business model.

What is a Franchise Business?

?A franchise business is a business model in which an individual (franchisee) operates their own business using the branding, products, services, and operational systems of an established and successful company (franchisor). The franchisor grants the franchisee the right to use its brand name, trademarks, business processes, and support services in exchange for fees, royalties, and adherence to certain established standards.

Quality franchisors provide several key elements to their franchisees to ensure a successful and mutually beneficial partnership. Here are the top five things a quality franchisor should provide:

• Comprehensive Training: Franchisors should offer thorough training programs that cover all aspects of operating the franchise business. This includes product or service knowledge, operational procedures, marketing strategies, and customer service protocols. Training should be ongoing to support the franchisee's growth and development.
• Proven Business Model: A quality franchisor will have a well-established and successful business model that has been tested and proven in multiple locations. They should provide access to a detailed operations manual that guides franchisees in replicating the successful formula.
• Marketing and Advertising Support: Franchisees benefit from a franchisor's marketing expertise and brand recognition. A good franchisor should assist franchisees in developing local marketing strategies and provide access to marketing materials, such as advertising templates, social media guidance, and promotional materials.
• Ongoing Support and Communication: Franchisors should maintain open lines of communication with franchisees and offer ongoing support. This includes regular check-ins, assistance with problem-solving, and updates on industry trends and best practices. Franchisees should also have access to a support team or hotline for immediate assistance.
• Supply Chain and Purchasing Power: Franchisees often benefit from the franchisor's purchasing power and established relationships with suppliers. This can lead to cost savings on inventory, equipment, and supplies, which can positively impact the franchisee's bottom line.

The Sport Franchise Benefits. ?

The franchise business model can bring several significant benefits to community sports, transforming the way they operate and ultimately enhancing the experience for participants, stakeholders and fans alike. Here's how:

• Operational Consistency: Franchise systems are known for their standardized and well-defined operational procedures. Applying this approach to community sports ensures that the games, events, and activities run consistently and efficiently across different locations. Whether it's organizing youth soccer leagues or local basketball tournaments, the franchise model helps maintain quality and uniformity.
• Access to Proven Systems: Franchisors have established successful business models and systems. By adopting these proven systems, community sports organizations can benefit from best practices in areas such as player development, event management, marketing, and revenue generation. This can lead to higher-quality programs and more effective resource utilization.
• Brand Recognition: Franchise sports models often come with recognized brand names and logos. Leveraging a well-known brand can attract more participants, sponsors, and fans to community sports events. It provides a sense of legitimacy and trust, which can be crucial for attracting both participants and financial support.
• Marketing and Sponsorship: Franchise systems typically have marketing and sponsorship strategies in place. Community sports organizations can tap into these strategies to secure sponsorship deals, advertise events, and promote their programs more effectively. The combined marketing power of a franchise network can draw larger audiences and generate more revenue.
• Financial Sustainability: By adopting a franchise business model, community sports organizations can create a more sustainable financial structure. This includes revenue-sharing models, diversified income streams (e.g., merchandise sales, concessions), and more efficient budget management. It can help community sports reduce their dependence on limited funding sources.
• Community Engagement: The franchise model encourages community involvement and support. Franchisees often have a vested interest in engaging with their local communities and building a fan base. This can lead to increased participation, attendance at games, and a stronger sense of community spirit.
• Professional Development: Franchise systems usually offer ongoing training and support to franchisees. This can benefit community sports by improving the skills of coaches, administrators, and volunteers. Better-trained personnel can provide higher-quality coaching and event management.
• Innovation and Adaptation: Franchise systems often encourage innovation and adaptation to changing market conditions. Community sports can benefit from this approach by staying current with trends in sports and entertainment, offering new and engaging experiences, and remaining relevant to their communities.
• Accountability and Oversight: Franchise systems typically implement robust systems for accountability and oversight. This ensures that community sports organizations adhere to established standards and operate transparently. Franchisors often provide mechanisms for monitoring financial transactions, program quality, and compliance with regulations. This level of accountability helps build trust among participants, sponsors, and the community, assuring them that the organization is committed to ethical and responsible practices.
• Consequence Management for Non-Compliance: In the franchise model, there are typically clear guidelines and standards that franchisees must adhere to. This includes operating procedures, quality standards, and ethical practices. When franchisees in community sports fail to comply with these established guidelines, the franchisor has the authority to impose consequences, which could range from warnings and fines to termination of the franchise agreement.

Solving Sport Alignment Issues

The lack of alignment between local, provincial / sate and national governing bodies in sports is a challenge that the franchise business model can help address. The franchise model done properly promotes consistency, efficiency, and collaboration, ultimately benefiting all sport stakeholders and fans. It can lead to a more coherent and competitive sports ecosystem, with improved pathways for athlete development and a stronger sense of national sporting identity.

Elephant in the room, it provides another option for local sport organizations to access and by nature of that competition alone, would compel existing governing bodies to perform at a higher level.

Incorporating the franchise business model into community sports can elevate their professionalism, reach, and sustainability. While preserving the grassroots spirit of local sports, it allows these organizations to harness the benefits of a proven business framework to better serve their communities and create lasting positive impact

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Need support with your business in sport, let's connect [email protected]

Interested in the concept of becoming the franchisor for sport, so are we!